Cisco Expands AI Solutions Amid Strong Market Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Source: stocktwits
Cisco Systems Inc's stock rose by 3.00% as it reached a 52-week high, reflecting positive market sentiment.
The company has recently launched its new Cloud Control software suite designed to help businesses and governments build AI agents for cybersecurity, addressing the growing complexity of cyber threats. This launch comes amid increasing market demand for advanced cybersecurity solutions, particularly with the anticipated release of Anthropic's Mythos model, which has raised concerns about potential cyberattack risks. Cisco's integration of OpenAI's Codex within the platform further enhances its appeal, allowing companies to quickly develop AI defense agents.
This strategic move positions Cisco favorably in the rapidly evolving tech landscape, as it not only meets current market needs but also aligns with broader trends in AI and cybersecurity, potentially driving future growth.
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Analyst Views on CSCO
Wall Street analysts forecast CSCO stock price to fall
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 124.150
Low
76.00
Averages
91.30
High
100.00
Current: 124.150
Low
76.00
Averages
91.30
High
100.00
About CSCO
Cisco Systems, Inc. designs and sells a range of technologies that power the Internet. The Company is integrating its product portfolios across networking, security, collaboration, applications and cloud. The Company's segments include the Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). Its Networking product category represents its core networking technologies of switching, routing, wireless, fifth generation (5G), silicon, optics solutions and compute products. Its Security product category consists of its cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of its meetings, collaboration devices, calling, contact center and platform as a service (CPaaS) offering. Its Observability product category consists of its full stack observability offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Report Highlights: In Q3 FY2026, Cisco achieved record revenue of $15.8 billion, a 12% increase year-over-year, with product orders rising 35% year-over-year, indicating robust market demand and business growth potential.
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- Model Routing Solution: Companies are beginning to adopt model routing tools that assign complex tasks to high-end models while delegating simpler tasks to cheaper alternatives, leading to significant cost efficiency improvements, with Scott Wu noting that routine work can achieve 5 to 10 times better cost efficiency.
- Corporate Spending Pressure: For instance, Cisco faces approximately $200 in token usage per employee per week, resulting in an annual expenditure of $900 million, forcing the company to reallocate resources and prioritize AI token spending.
- Market Dynamics Shift: If companies start directing simple, high-volume tasks to cheaper open-source models, OpenAI and Anthropic may face declining revenues, leading to a shift in industry pricing models towards more efficient usage, which could impact the valuations of leading AI companies.
See More
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- Cost Pressure Evident: For instance, Cisco's AI usage costs approximately $200 per employee per week, leading to an annual expenditure of $900 million, prompting the company to reallocate resources and prioritize the use of AI tokens.
- Productivity Guarantee: Cognition has introduced an AI productivity guarantee, pledging to fund up to $10 million in usage if its coding agent Devin fails to deliver corresponding engineering value, emphasizing the importance of output over mere activity.
- Market Pricing Shift: As companies begin directing simple, high-volume tasks to cheaper open-source models, OpenAI and Anthropic may face revenue risks, indicating a shift in industry pricing models towards more efficient usage.
See More
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- Tight Cash Flow: The company reduced its cash reserves from $437 million to $176 million after paying off $250 million in senior notes, raising investor concerns about liquidity despite the positive debt-free status.
- Lack of Analyst Coverage: With minimal analyst coverage and the only estimate maintaining a 'sell' rating, investor confidence in Ubiquiti's growth trajectory is low, leading to a muted response to its earnings beat.
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